BEL, Sika, HAL: Defence stocks rally up to 7 today; check reasons, ratings and price targets
Indian defence stock rallied up to 7 per cent during the trading session on Thursday amid the hopes of order inflows from NATO countries, which agreed to hike defence spending.
- Jun 26, 2025,
- Updated Jun 26, 2025 12:55 PM IST
Indian defence stocks rallied up to 7 per cent during the trading session on Thursday amid the hopes of order inflows from NATO countries, which agreed to hike defence spending. This move is likely to be a major positive for domestic defence firms which may see big export opportunities, if the spending is increased.
Following the update, shares of Sika Interplant Systems surged nearly 6.55 per cent to Rs 1,462.70 on Thursday with its total market capitalization topping Rs 3,000 crore mark. Taneja Aerospace & Aviation hit an upper circuit limit of 5 per cent to Rs 431.85 in the early session.
Shares of Data Patterns (India) gained more than 4.22 per cent to Rs 2,907.20, while Paras Defence and Space Technologies gained nearly 3 per cent at open. Among the larger peers, Bharat Electronics gained more than 2 per cent, while Hindustan Aeronautics gained more than 1.25 per cent. Bharat Dynamics jumped more than 2.3 per cent.
Among other defence players, Axiscades Technologies jumped more than 2 per cent each. MTAR Technologies, Astra Microwave Products, Mishra Dhatu Nigam, Avantel, Zen Technologies gained 1-2 per cent each. However, some of these stocks gave up their gains and slipped in the red.
US President Donald Trump asked the NATO countries to increase their defence spending to 5 per cent of their GDP, to which its allies agreed and backed Trump's words in their statement issued on Wednesday. The NATO nations concluded their summit in the Netherlands on Wednesday. The new target is to be achieved in the next 10 years.
NATO countries have pledged to allocate 3.5 per cent of their GDP to core defence needs—like troops and weapons—and a further 1.5 per cent to wider defence-related efforts, including cybersecurity, pipeline protection, and modifying roads and bridges to support heavy military equipment.
Krishna Doshi, Equity Research Analyst, Ashika Institutional Equity said that NATO’s defence spending boost presents export opportunities for Indian defence firms. India the ideal choice for sourcing critical components and equipment as a trusted and reliable partner following the assertive display of military capabilities in the recent war with Pakistan, she said.
"We believe that the major beneficiaries will be Data Patterns, Zen Technologies, Paras Defence & Space Technologies, Astra Microwave, Ideaforge, HAL, BEL & BDL. Further, given the prevailing geopolitical tensions, increased defence spending, and the government’s emphasis on indigenization and exports, the overall outlook on the defence sector remains positive," Doshi adds.
Choice Broking in its recent report on Wednesday, revised its price target on Bharat Electronics Ltd (BEL) to Rs 500 with a 'buy' rating on it. Earlier this week, InCred Equities continues to remain positive on defence stocks on the back of accelerating along a robust growth trajectory. It initiated coverage on BEL and Hindustan Aeronautics Ltd with 'add' rating and target price of Rs 459 and Rs 6,325, respectively.
18 listed defence stocks in India, which together saw Rs 3,12,052 crore or $36.35 billion rise in market capitalisation (m-cap) in the six-month period of 2025. The year is turning out to be full of geopolitical tensions. Russia-Ukraine war, India-Pakistan tensions and now Iran-Israel conflict, the first half of the year saw focus shifting to indigenous defence technologies globally.
Divam Sharma, Founder & Fund Manager at Green Portfolio PMS, said that a visible improvement in the performance of defence companies is expected from the second quarter onwards. Antique Stock Broking has 'buy' ratings on Hindustan Aeronautics, GRSE, Cochin Shipyard, PTC Industries and Mazagon Dock from the defence pack. It has suggested to 'sell' Cochin Shipyard.
Healthy order book of Rs 22,700 crore translating into 6.8 times order book / FY25 sales (highest amongst peers), strategic importance to GoI (prime production agency for guided weapons systems) and expected improvement in operating margins, said Minerva Capital Research, without rating the stock.
Indian defence stocks rallied up to 7 per cent during the trading session on Thursday amid the hopes of order inflows from NATO countries, which agreed to hike defence spending. This move is likely to be a major positive for domestic defence firms which may see big export opportunities, if the spending is increased.
Following the update, shares of Sika Interplant Systems surged nearly 6.55 per cent to Rs 1,462.70 on Thursday with its total market capitalization topping Rs 3,000 crore mark. Taneja Aerospace & Aviation hit an upper circuit limit of 5 per cent to Rs 431.85 in the early session.
Shares of Data Patterns (India) gained more than 4.22 per cent to Rs 2,907.20, while Paras Defence and Space Technologies gained nearly 3 per cent at open. Among the larger peers, Bharat Electronics gained more than 2 per cent, while Hindustan Aeronautics gained more than 1.25 per cent. Bharat Dynamics jumped more than 2.3 per cent.
Among other defence players, Axiscades Technologies jumped more than 2 per cent each. MTAR Technologies, Astra Microwave Products, Mishra Dhatu Nigam, Avantel, Zen Technologies gained 1-2 per cent each. However, some of these stocks gave up their gains and slipped in the red.
US President Donald Trump asked the NATO countries to increase their defence spending to 5 per cent of their GDP, to which its allies agreed and backed Trump's words in their statement issued on Wednesday. The NATO nations concluded their summit in the Netherlands on Wednesday. The new target is to be achieved in the next 10 years.
NATO countries have pledged to allocate 3.5 per cent of their GDP to core defence needs—like troops and weapons—and a further 1.5 per cent to wider defence-related efforts, including cybersecurity, pipeline protection, and modifying roads and bridges to support heavy military equipment.
Krishna Doshi, Equity Research Analyst, Ashika Institutional Equity said that NATO’s defence spending boost presents export opportunities for Indian defence firms. India the ideal choice for sourcing critical components and equipment as a trusted and reliable partner following the assertive display of military capabilities in the recent war with Pakistan, she said.
"We believe that the major beneficiaries will be Data Patterns, Zen Technologies, Paras Defence & Space Technologies, Astra Microwave, Ideaforge, HAL, BEL & BDL. Further, given the prevailing geopolitical tensions, increased defence spending, and the government’s emphasis on indigenization and exports, the overall outlook on the defence sector remains positive," Doshi adds.
Choice Broking in its recent report on Wednesday, revised its price target on Bharat Electronics Ltd (BEL) to Rs 500 with a 'buy' rating on it. Earlier this week, InCred Equities continues to remain positive on defence stocks on the back of accelerating along a robust growth trajectory. It initiated coverage on BEL and Hindustan Aeronautics Ltd with 'add' rating and target price of Rs 459 and Rs 6,325, respectively.
18 listed defence stocks in India, which together saw Rs 3,12,052 crore or $36.35 billion rise in market capitalisation (m-cap) in the six-month period of 2025. The year is turning out to be full of geopolitical tensions. Russia-Ukraine war, India-Pakistan tensions and now Iran-Israel conflict, the first half of the year saw focus shifting to indigenous defence technologies globally.
Divam Sharma, Founder & Fund Manager at Green Portfolio PMS, said that a visible improvement in the performance of defence companies is expected from the second quarter onwards. Antique Stock Broking has 'buy' ratings on Hindustan Aeronautics, GRSE, Cochin Shipyard, PTC Industries and Mazagon Dock from the defence pack. It has suggested to 'sell' Cochin Shipyard.
Healthy order book of Rs 22,700 crore translating into 6.8 times order book / FY25 sales (highest amongst peers), strategic importance to GoI (prime production agency for guided weapons systems) and expected improvement in operating margins, said Minerva Capital Research, without rating the stock.